18bba033 OAP
18bba033 OAP
18bba033 OAP
A PRESENTATION ON
BM301.1 ORGANIZATION ATTACHMENT PROGRAMME (OAP)
1
Phase 1 Evolution and growth of Cigarette industry
in world
• Cigarette smoking is so common within the world's population and prevalence has increased
markedly over also the popularity of electronic nicotine delivery systems and electronic non-
nicotine delivery systems (ENDS/ENNDS) are rapidly increasing the past decades in many
countries over the world.
• One of the most popular products in the market is the ENDS/ENNDS. There is growing interest
and concern about e-cigarettes in many countries because e-cigarettes have been widely advertised
in many countries in the past few years, mostly through the internet.
• Distributors of e-cigarettes promote the product as completely free of harmful substances.
Nonetheless, some distributors present their products as an alternative to tobacco smoking,
suggesting that e-cigarettes can be used to aid smoking cessation.
• During the past few years e-cigarettes have been gaining popularity, also future perspectives of the
tobacco industry in the face of the fast growing market of e-cigarettes and technological
development, industrial growth, changing user demands are caused represent of new product such
as next generation e-cigarettes in global market.
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• In the 16th century, the consumption, cultivation, and trading of tobacco quickly spread and after that the first
commercial cigarettes were made in 1865. After that rates of cigarette smoking widely increase throughout
the world. Inventor Herbert A. Gilbert who on presented invention in 1963 and patented in 1965 that
represent the main characteristics of e-cigarettes from United States Patent Office the name of smokeless non
tobacco cigarette.
• E-cigarettes industries have a latent period forty years from 1963 to 2003. The history of e-cigarette then
restarted in 2003. From Chinese pharmacist Hon Lik invention of e-cigarettes that is a first prototype of uses
a lithium battery to produce energy to vaporize glycerol and a nicotine solution through a piezoelectric
device.
• During the past few years e-cigarettes have been gaining popularity, also future perspectives of the tobacco
industry in the face of the fast growing market of e-cigarettes and technological development, industrial
growth, changing user demands are caused represent of new product such as next generation e-cigarettes in
global market.
• Distributors of e-cigarettes promote the product as completely free of harmful substances. Nonetheless, some
distributors present their products as an alternative to tobacco smoking, suggesting that e-cigarettes can be
used to aid smoking cessation. The benefits and risks of e-cigarette use are uncertain as the technology is
relatively new.
History
• India is the third biggest maker of tobacco on the planet. A sum of 450 million kgs of tobacco was
delivered in 1995.
• Just 80 million kgs were utilized for household cigarette creation and 55 million kgs sent out as
cigarette tobaccos.
• In the UK, cigarette share went up from 12% in 1890 to 79% in 1995. In Italy, cigarettes comprise
98% of utilization today contrasted with 5% in 1900.
• The portion of cigarettes has declined to 20% from 23% in 1971, while generally tobacco
utilization has developed. Truth be told, industry volumes of cigarettes declined by 12.5% between
1984/85 and 1994/95 preceding organizing a recuperation in 1995/96.
• There are around 200 million tobacco buyers in India, of which just 25 million smoke cigarettes,
while 275 million in China smoke cigarettes out of 330 million tobacco purchasers.
Enhancing Government Revenue
• Worldwide interest is confined to cigarette type tobaccos of indicated quality. India's tobacco trades
at Rs. 421 crores are miniscule, given the size of our tobacco showcase.
• Practically 90% of Government incomes gather from cigarettes, leaving 88% of tobacco customers
adequately outside the expense net.
• Extract income gathered from cigarettes is separated between the Center and the States in a
proportion dictated by the Central Government.
• In the West, tobacco and cigarettes have gotten equal, not at all like in India, where about 88% of
customers do no smoke cigarettes.
• Any push to direct the tobacco business subsequently should consider the business' capacity to
agree. To control only the 12% cigarette fragment would invalidate the very point of such guideline.
• The law was stretched out to biting tobacco in 1986 and gutka in 1990. Other tobacco items are as
yet not required to convey any legal admonition. Clearly, the legal wellbeing cautioning
prerequisites on tobacco utilization should be consistently appropriate to all tobacco items.
Market Players and Market Share
• India is the second biggest maker and third Products
biggest exporter of tobacco on the planet. The
tobacco business gives work to ~46 Mn
individuals. With the advancing offices gave
by the Tobacco Board of India, the market has
recorded an aggregate (produced and
unmanufactured tobacco) fare of INR 60.84
Bn in FY 2018.
• Cigarette charges (64% extract obligation,
28% GST, and 5% cess) in India are among
the most noteworthy on the planet.
• The Global Cigarette Market was esteemed at
USD 726.94 billion in the year 2018.
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• In 1999, a World Bank survey inferred that, all else being equivalent, value ascents of about 10%
would on normal decrease tobacco utilization by about 4% in created nations and about 8% in
creating nations. Overall, a 10% expansion in cost will be trailed by a reduction in utilization of
4.8%.
• As indicated by The Tobacco Atlas, assessments of incomes from the worldwide tobacco industry
likely methodology a half trillion U.S. dollars every year. In 2010, the joined benefits of the six
driving tobacco organizations was U.S. $35.1 billion, equivalent to the consolidated benefits of
Coca-Cola, Microsoft, and McDonald's around the same time.
• Cigarette organizations have created modern battles focusing on men, ladies, and youngsters in
various financial gatherings.
• A significant number of these techniques go around the Indian tobacco publicizing boycott.
Understanding these promoting systems is basic to mimimise the misuse of provisos in tobacco
control enactment.
Recent Trends
• The worldwide tobacco showcase size was esteemed at USD 849.09 billion out of 2019 and is
relied upon to develop at a compound yearly development rate (CAGR) of 3.1% from 2020 to
2027.
• As per the American Lung Association, the utilization of tobacco items has expanded from 28.2
percent to 31.2 percent among secondary school understudies from 2002 to 2019 in U.S.
• World Health Organization's worldwide report on pattern in commonness of tobacco utilize
distributed in 2019, the quantity of male tobacco clients on the planet was expanding every year
during 2000 to 2018. In 2018, the quantity of clients over the globe was seen as 1093 billion.
• In 2017, tobacco organizations spent USD 9.36 billion on advertising its completed items in U.S
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• Cigarettes drove the market and represented over 70.0% portion of the worldwide income in 2019.
• As indicated by an examination distributed by the National Survey on Drug Use and Health,
2016, smoking rate is commonly high in non-metropolitan regions, alongside the Midwestern and
Southern locales of U.S.
• As indicated by the CDC, in 2018, almost 13.7% of the U.S. grown-ups matured 18 years+
smoked cigarettes.
• This implies an expected 34.2 million grown-ups were cigarette smokers in U.S.
• Cigarette utilization is developing quickly in chosen markets. E-cigarette deals happen through
numerous dispersion channels, for example, retail locations, vape stores, and on the web.
P E S T E L
Political Economic Social Technologica Environmental Legal
l
Governments around Individuals getting Tobacco contains the The 21st century Each time a cigarette is In most
the globe have more extravagant. energizer nicotine, which saw the inappropriately disposed created
realized that tobacco Stop spent money on just so happens to be an advancement of of, another poisonous nations, it’s
items affect your things that aren’t addictive compound. another option in synthetic is discharged illegal for
wellbeing. essential. E.g. contrast to into nature. those younger
Tobacco. smoking, known than 18 to buy
as vaping. and expend
cigarettes.
Rather than In many nations, People who begin devouring Vaping gadgets the most famous tobacco laws become
prohibiting them, people as of now tobacco items effectively get impersonate the items, contain exceptional progressively
numerous have all that could "snared" and can't stop. vibe of smoking substance channels in prohibitive,
administrations have possibly be needed These addictions become by containing their end. planning to
selected extra money to buy more grounded and more some measure of decrease
tobacco. grounded. nicotine. utilization of
tobacco.
To decrease Then in creating Numerous non-smokers vaping is we may see a push against it's conceivable
utilization (and nations, this incline toward not to breathe drawing interest cigarettes from a that
create extra income additional money in the recycled smoke of away from contamination stance. administrations
for themselves) by may cause a stamped others, offering ascend to conventional will expand the
applying higher duty increment in the no-smoke regions over the tobacco. age edge from
rates to tobacco interest for tobacco world which people
can purchase
items
and use
tobacco.
Porter's Five Force Model
1. Threats of New Entry
• Already have cigarettes at different
price, flavors ,brand.
• Distribution channel is tough.
• High tax
4. Power of Buyers
5. Rivalry among existing • Addiction- Even after knowing harm
3. Power of Suppliers
• Cigarettes company have direct access to competitors can’t leave it.
• Many competing players: ITC, Bristol, • Research shows many people cannot
distribution channel and addictive buyers.
• Suppliers don’t have much control over etc. differentiate among brands in a blind
smokers. • Price competition is high. taste.
• Advertisement is prohibited in India. • Low switching costs in terms of Price.
• Many unorganized suppliers.
2. Threats of Substitutes
• Herbal cigarettes were launched but do not
become successful.
• Same happen with nicotine patch.
• So no other substitute in tobacco.
SWOT Analysis
Strength Weakness
• Logistical capacity • Slow transitions in ‘lower- and middle income
• Customer base countries.
• Nicotine expertise • (Historically) bureaucratic : ANDS came as a surprise.
• Money • Poor reputation
Opportunities Threats
• Diversification
• Other tobacco multinationals
• Sustainable business model
• Independent companies
• Scientific respectability
• Reputational gain
BCG Matrix
• CASH COW:
• Cash cows are the items that have a high piece of the pie in a market that has low development. For ITC,
there is one item that has without a doubt been the Cash Cow and its FMCG Cigarettes.
• Having a piece of the pie of 80-85 %, ITC Cigarettes holds an extremely solid hold in the market.
• The item requires extremely less venture to keep up its piece of the overall industry and fend off any
opposition.
• STARS:
• High market share products in high growth industry are considered Stars of the organization.
• ITC’s paperboard and packaging business, Agribusiness and Hotels are the Stars of the organization.
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• QUESTION MARK:
• There are items that figure a piece of the business that is still in the period of improvement, yet
the association has not had the option to make a critical situation in that industry.
• With solid rivalry and the developing interest for ayurvedic items has provoked ITC
• DOGS:
• Dogs are those products that were perceived to have the potential to grow but however failed to
create magic due to the slow market growth.
• Since the product is not expected to bring in any significant capital
• Heavy competition from the likes of Infosys, TCS, Accenture, HCL etc
McKinsey 7s Model Analysis
Phase 2 Introduction.
• Established in 1910
• Company was incorporated on August 24, 1910 under the name Imperial Tobacco Company of
India Limited.
• Despite the fact that the initial six many years of the Company's presence were essentially
committed to the development and solidification of the Cigarettes and Leaf Tobacco organizations
• ITC's Packaging and Printing Business was set up in 1925 as a vital in reverse mix for ITC's
Cigarettes business. It is today India's most advanced bundling house.
• The Seventies saw the beginnings of a corporate change that would introduce groundbreaking
changes in the life of the Company.
• In 1979, ITC entered the Paperboards business by advancing ITC Bhadrachalam Paperboards
Limited.
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• In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint endeavor.
• In 1990, ITC obtained Tribeni Tissues Limited, a Specialty paper fabricating organization and a
significant provider of tissue paper to the cigarette business.
• In 1990, utilizing its agri-sourcing competency, ITC set up the Agri Business Division for fare of
agri-items.
• ITC propelled line of premium scope of note pads under brand Paperkraft in 2002.
• ITC likewise entered the Lifestyle Retailing business with the Wills Sport scope of worldwide
quality loosened up wear for people in 2000.
• In 2000, ITC spun off its data innovation business into a completely possessed auxiliary, ITC
Infotech India Limited, to all the more forcefully seek after developing open doors here.
• ITC's invasion into the Foods business is a remarkable case of effectively mixing different inside
capabilities to make another driver of business development.
• In a little more than 10 years and an a large portion of, the Foods business has developed
• In 2010, ITC propelled its handrolled stogie, Armenteros, in the Indian market.
Details of Promoters and Owners
• Mission
• To enhance the wealth generating capability of the enterprise in a globalization environment,
delivering superior and sustainable Stakeholder value. Trusteeship, customer focus, respect for
people, excellence and innovation are the core values of ITC Ltd.
• Vision
• Sustain ITC’s position as one of India’s most valuable corporation through world-class performance,
creating growing value for the Indian economy and Company’s stakeholders.
Objective of the company
SWOT analysis of company
• Strengths • Weaknesses
• Arrangement of Business • High Proportion of incomes from Tobacco items
• Solid Brands in different organizations • Relationship with Tobacco Products influences the
• Compelling Social Business Initiatives picture
• Entomb and Intra-divisional Synergy • An expansion in Tax on Tobacco influences income
• Opportunities • Threats
• Key Acquisitions • Increasing Competition in FMCG organizations
• Development in Purchasing power and improving way • Exacting Regulations and Increasing Taxation in
of life Cigarette Business
• Developing Personal Hygiene just as Food preparing • Expanding mindfulness on wellbeing
Industry in India
• Tap openings made in the Rural Market
Finance Department Structure
Finance Department
• Introduction
• The part of an organization that manages its money. The business functions of
a finance department typically include planning, organizing, auditing, accounting
for and controlling its company's finances. The finance department also usually
produces the company's financial statements.
• Working Capital Management
• Introduction
• Introduction
• HR departments are responsible for overseeing employee-benefits design
• Job Qualification & Experience
• Applicants who are truly attempting to make sure about the activity in ITC Limited should clear the
composed test and meeting process
• The applicants who overcame the meeting procedure will be chosen by the organization.
• Hopefuls should rehearse ITC Limited position papers to split ITC Limited composed test or ITC Limited
online test.
ITC Limited Selection Process
• Technical interview
• HR interview
• The applications received through the official site would be shortlisted for the basic criteria.
• Those who are selected in this interview would be provided the job offer.
Job Description
Human Resource Planning Process
• ITC's pre-eminent position as one of India's leading corporates in the agricultural sector
• A unique rural digital infrastructure network
• ITC sources the finest of Indian Feed Ingredients
• ITC's Agri Business is the country's second largest exporter of Agri-products.
• ITC's remarkable quality around here is the broad in reverse linkages
• The special e-Choupal model makes a huge two-way multi-dimensional channel
• Material taking care of includes short-separation development inside the limits of a structure
Quality Control System